What is Simultaneous Property Settlement?
When you’re selling a property it often involves the purchase of another. So how does this practically work? This synchronized process involves aligning your contractual obligations, dates, funds and removalists!
Key Aspects to Consider:
1. Timing and Coordination:
- Once you have found a purchaser for your home and a property to purchase it is important to remember not to sign anything until you have spoken with your conveyancer.
- You must agree on a suitable settlement date with all of the parties
- It is usually the case that your sale and purchase settlements will occur on the same day.
2. Financial Considerations
- In all instances it is important not to commit to purchasing a property until you are unconditionally able to proceed. In the case of a simultaneous settlement this may mean the exchange of contracts for the sale of your home or a bridging loan.
- Occasionally you can use the deposit from the sale of your home to put down a deposit on your purchase. Your conveyancer will request this.
- At settlement the proceeds from the sale of your home can be used to purchase your new home that same day.
3. Practical Considerations
- On the day of settlement of your sale you must have all of your belongings out. This is difficult if you cannot move into your new home until that same day.
- Your conveyancer may try to arrange early access to your new home so that you can move your belongings in before settlement. This will allow you to take your time to vacate the property you are selling.
Conclusion:
Navigating simultaneous property settlements in NSW requires careful planning and expert guidance. By understanding and preparing for the process, both buyers and sellers can achieve a smooth transition and a positive property transaction experience. Embrace the principles of simultaneous settlements to navigate the complexities with confidence and clarity.
